Seagate Technology stock surges after profit and revenue beats, citing ‘rapidly accelerating’ data storage demand


Shares of Seagate Technology Holdings PLC
STX,
-3.48%

charged up 2.6% in premarket trading Wednesday, after the data storage company reported fiscal fourth-quarter profit and revenue that rose to multiyear highs and beat expectations, and provided an upbeat outlook, citing “rapidly accelerating” demand for data. Net income for the quarter to July 2 rose to $482 million, or $2.07 a share, from $166 million, or 64 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share grew to a nine-year high of $2.00 from $1.20, beating the FactSet consensus of $1.87. Revenue increased 19.7% to $3.01 billion, a six-year high, to top the FactSet consensus of $2.97 billion. For the fiscal first quarter, Seagate expects adjusted EPS of in the range of $2.05 to $2.35, above the FactSet consensus of $1.90, and projects revenue in the range of $2.95 billion to $3.25 billion, compared with expectations of $2.99 billion. “Demand for data is rapidly accelerating in the cloud and at the edge, driving secular growth for mass capacity data storage,” said Chief Executive Dave Mosley. The stock as soared 37.5% year to date through Tuesday, while the S&P 500
SPX,
+0.82%

has advanced 15.1%.